Tax Evasion in Transition: Outcome of an Institutional Clash? Testing Feige's Conjecture in Albania

Posted: 7 Jan 2005

See all articles by Klarita Gërxhani

Klarita Gërxhani

University of Amsterdam - Faculty of Economics and Business (FEB); University of Amsterdam - Amsterdam Institute for Social Science Research (AISSR); University of Amsterdam - Amsterdam Institute for Advanced Labour Studies (AIAS)

Abstract

A field survey of households was conducted in Tirana, Albania in 2000. A response rate of 89.3% yielded 1.340 valid questionnaires, allowing me to test Feige's (In: Nelson, J.M., Tilley, C., Walker, L. (Eds.), Transforming Post-communist Political Economics. National Academy Press, Washington, DC, p. 21) conjecture that more tax evasion will be observed, when formal and informal institutions clash. Respondents' attitudes towards formal and informal institutions were obtained by applying factor analysis to their responses to a series of attitudinal questions. The theoretical importance of the interaction between formal and informal institutions in determining tax evasion finds empirical support in the data.

Keywords: Tax evasion, Transition, Formal and informal institutions

JEL Classification: H26, O5, O17

Suggested Citation

Gërxhani, Klarita, Tax Evasion in Transition: Outcome of an Institutional Clash? Testing Feige's Conjecture in Albania. European Economic Review, Vol. 48, No. 4, pp. 715-941, August 2004. Available at SSRN: https://ssrn.com/abstract=643784

Klarita Gërxhani (Contact Author)

University of Amsterdam - Faculty of Economics and Business (FEB) ( email )

Oudezijds Achterburgwal 185
Amsterdam, 1012 DK
Netherlands

HOME PAGE: http://home.medewerker.uva.nl/k.gerxhani/

University of Amsterdam - Amsterdam Institute for Social Science Research (AISSR) ( email )

Oudezijds Achterburgwal 185
Amsterdam, 1012 DK
Netherlands

HOME PAGE: http://home.medewerker.uva.nl/k.gerxhani/

University of Amsterdam - Amsterdam Institute for Advanced Labour Studies (AIAS)

Amsterdam
Netherlands

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